Greenville, SC – Nancy Stein, 62, of Anderson, South Carolina, was sentenced to 73 months in federal prison on February 2, 2015, after pleading guilty to a complex scheme involving bank fraud and illegal hazardous waste storage. Stein, the former operator of American Screw and Rivet Corporation (ASR), also faces a hefty restitution order totaling $17,692,974. ASR itself was sentenced to five years of probation and is also responsible for paying restitution related to the fraudulent activities and environmental violations.
The case, investigated by the United States Secret Service and the Environmental Protection Agency’s (EPA) Criminal Investigation Division, revealed a years-long operation where Stein created fictitious companies and submitted fraudulent loan applications to over two dozen financial institutions. Between 2004 and 2011, Stein allegedly fabricated invoices for non-existent machinery, using these as collateral for loans. She further concealed the deception by swapping legitimate serial numbers on existing equipment with those of the phantom machines. The scheme ultimately unraveled when ASR was forced into involuntary bankruptcy in 2011, triggering an investigation by the Secret Service.
“Today’s sentencing was the result of a criminal investigation which was initiated in 2010,” stated Thomas M. Griffin, Resident Agent in Charge of the Greenville, S.C. Office of the United States Secret Service. “The Secret Service utilized significant resources conducting interviews, reviewing bank records and other documents associated with the fraudulent loans obtained by these defendants.” Investigators uncovered cumulative losses exceeding $16 million across 26 victim banks.
Environmental Violations
Alongside the financial crimes, Stein and ASR were found to have knowingly violated environmental regulations by storing large quantities of hazardous waste without the necessary permits. The EPA and South Carolina Department of Health and Environmental Control (DHEC) had informed Stein that permits were required for the waste generated by ASR’s manufacturing process, but no application was ever submitted. A subsequent DHEC search in June 2011 revealed a substantial amount of uncontained, flammable, and corrosive waste exposed to the elements. The EPA was forced to remove and dispose of over 24,000 gallons of hazardous waste at a cost of approximately $1.72 million.
Maureen O’Mara, Special Agent in Charge of EPA’s criminal enforcement program in South Carolina, emphasized the severity of the environmental offense. “For a number of years, the defendants stockpiled thousands of gallons of unpermitted hazardous waste at ASR’s location in Anderson,” she said. “Today’s sentencing shows that those who refuse to comply with the law, putting public health and the environment at risk, will face the consequences in court.”
Legal Ramifications
Stein pleaded guilty in December 2013 to six counts of violating Title 18 U.S. Code Section 1344 (Bank Fraud) and one count of violating Title 42 U.S. Code Section 6928(d)(2)(A) of the Resource Conservation and Recovery Act (RCRA), concerning the improper storage of hazardous waste. The sentences for both charges were ordered to run concurrently, resulting in the 73-month prison term. The RCRA violation carries potential penalties including imprisonment and significant fines, while bank fraud can result in up to 30 years in prison and a $1 million fine per count.
Key Facts
- Defendant: Nancy Stein & American Screw and Rivet Corporation
- Location: Anderson, South Carolina
- Crimes: Bank Fraud & Illegal Hazardous Waste Storage
- Sentencing: Nancy Stein – 73 months imprisonment, $17.69M restitution; ASR – 5 years probation, restitution payments
- Laws Violated: 18 U.S.C. 1344, 42 U.S.C. 6928(d)(2)(A)
- Hazardous Waste Cleanup Cost: Approximately $1.72 million
- Victim Financial Institutions: 26+ with losses exceeding $16 million
Source: EPA ECHO Enforcement Case Database
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